Based on following answer the question.
Bharat Ltd. has been registered with the capital as ₹50,00,000 divided into 5,00,000 shares of ₹10 each. 3,00,000 shares of ₹10 each are offered by the company to the public for subscription, amount payable as ₹4 on application, ₹3 on allotment and the balance on call. The company received application for 2,70,000 shares and the company finalised the allotment accordingly. The company did not make the final call. The Company received all money except allotment money on 5,000 shares held by Rahul. His shares were forfeited.
Determine the amount which Company may ask from shareholders on calls.
Answer & explanation
Correct answer: option 2
The correct answer is Option (2) → ₹7,95,000
The company has made only application and allotment (₹4 + ₹3 = ₹7 per share); the balance of each share is still uncalled, and the company may ask for it later.
Uncalled amount per share = ₹10 − ₹7 = ₹3
Shares allotted = 2,70,000
Less: Rahul’s shares forfeited for non-payment of allotment = 5,000
Shares on which calls can still be made = 2,65,000
Amount the company may ask on calls = 2,65,000 × ₹3 = ₹7,95,000
Forfeited shares are no longer held by Rahul, so no call can be made on them until they are reissued.
NCERT (2026-27 edition): |